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FCMB’s profit rises by 12%

By on April 2, 2014

The FCMB Group Plc has reported a 12 per cent rise in its profit before tax for the financial year ended December 31, 2013.

The bank’s results released to the Nigerian Stock Exchange on Monday, showed that its profit before tax closed at N18.2bn compared to the previous year.

It also reported growth in its earnings as net revenue rose by 16 per cent to N84.2bn, while successful execution of retail strategy, growth of bancassurance and FinBank merger synergies provided necessary revenue growth impetus.

Thus, the group proposed a dividend payout of 30 kobo per share to its shareholders in the year under consideration.

In the year under consideration, the bank’s deposits grew by 11 per cent to N715bn, aided by 21.1 per cent growth in current and savings accounts, while fixed deposits declined during the year.

Consequently, the bank’s funding mix has improved, with current and savings accounts now accounting for 74 per cent of total deposits.

This led to a reduction in its cost of funds during the year in spite of the fact that interest rates remained high throughout 2013.

Speaking on the results, the Managing Director, FCMB Group Plc,  Mr. Peter Obaseki, said, “The year 2013 saw the group being able to record appreciable growth in profits and resume dividend payments. Returns on average equity and average assets fell by 4.3 per cent and 16.6 per cent, respectively, over the 2012 full year level, as a result of higher tax.

“Our non-banking subsidiaries, CSL Stockbrokers and FCMB Capital Markets, while contributing only two per cent of group profits, not only enabled the bank to grow its customer wallet share, but also won new customers through advisory services that eventually led to transaction banking relationships. These businesses also consolidated their market positions.”

On his part, the Group Managing Director/Chief Executive Officer, FCMB Limited, Mr. Ladi Balogun, said, “In spite of the challenging regulatory environment, which moderated profit growth, 2013 saw our commercial and retail banking activities benefit greatly from the merger that was concluded in 2012.”

 

 

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